Author: Cherise

‘Build wealth, don’t depend on NIS’

Posted on by Cherise

“Our population is ageing, and it is doing so rapidly. In 1980, only about five per cent of our citizens were aged 65 or older. Today, that number stands at over 11 per cent. By the year 2060, it is expected to more than double to 26 per cent. Think carefully about what that means.”

“This is a reality that this government refuses to ignore. The national insurance system is already under serious strain. ” – Davendranath Tancoo, Minister of Finance, Trinidad and Tobago

 

“DO NOT RELY SOLELY ON NIS FOR FUTURE WEALTH”

Here’s a reflective and practical look at the recent advice from Davendranath Tancoo, Minister of Finance, Trinidad and Tobago, when he urged citizens not to rely solely on the National Insurance Board of Trinidad and Tobago (NIS) for future wealth. The reference used throughout  for this article is https://newsday.co.tt/2025/10/25/tancoo-build-wealth-dont-depend-on-nis/#:~:text=FINANCE%20minister%20Dave%20Tancoo%20has%20warned%20that%20TT%E2%80%99s,%28NIS%29%20and%20new%20initiatives%20to%20mobilise%20domestic%20capital. (unless otherwise stated/shown)

We’ll highlight why his advice makes sense, examine the economic and socio‐political context, and offer realistic steps individuals can follow to build their own financial resilience.

Why his message matters

Minister Tancoo made it clear that the days of depending “solely on the National Insurance System, on government assistance, are coming to an end.” He pointed out that the government intends to deepen capital markets and offer instruments that allow citizens to invest in productive assets.

From a broader perspective, this assurance stems from the fact that:

 

 

  • As a result, expecting the NIS to deliver full retirement security or substantial wealth accumulation without individual action is risky.

The current context in Trinidad and Tobago

To put the minister’s advice into context, here are key facts:

  • The economy: “Fraught with uncertainty and underwhelming, albeit steady performance, the global economy in 2025 will see its slowest growth since the COVID-19 pandemic, stemming primarily from a series of shocks from the United States (US) trade policy and other volatile geo-political tensions around the world. As such, the IMF has forecasted global growth to falter to 3.0 percent in 2025. Similarly, the World Bank (WB), expects growth to weaken to 2.3 percent in 2025, with decelerations in most economies as compared to 2024. Despite the weakened outlook, the global economy is not expected to fall into a recession.” Review of the Economy 2025 – finance.gov.tt.
  • The NIS fund: It is one of the pillars of social protection, but actuarial reviews and recent data show a diminishing ratio of contributors to beneficiaries and real pressures on investment returns.
  • Socio‐political factors: With pressures from inflation, global uncertainty, and structural constraints (such as dependence on one or two sectors), individuals cannot assume the status quo will persist. The government’s budget shows recognition of “deep structural imbalances” and emphasis on restoring fiscal stability.

In short: you are operating in an environment where the state-provided safety net (via NIS) is still crucial but cannot reasonably be the only foundation for wealth creation.

Realistic approaches for individuals

Here are practical steps you and other citizens can adopt, given the context:

Start by clarifying your goals.

Ask: What does “wealth” mean for me? When do I want financial independence or retirement to happen? How much income will I need then? Setting concrete targets helps you determine how much you must save and invest.

Build a savings and investment habit now.

Waiting until later reduces your flexibility. There are articles showing that in Trinidad and Tobago, saving more than the typical 10 % of income can make a big difference in wealth accumulation.
Given the environment, aim for a savings rate you can sustain, and channel that into assets beyond just deposit accounts, because inflation erodes cash value.

Diversify away from depending solely on NIS or one asset class.

Since NIS cannot guarantee generous outcomes alone, it makes sense to build multiple income/asset streams: e.g., equities, property, mutual funds, small business ventures, and so on. Minister Tancoo’s focus on enabling citizens to invest in public bonds and Real Estate Investment Trust (REITs) suggests the government sees capital market participation as a vector.

 
Real estate trust to unlock ‘national wealth’ to ordinary citizens

 

By spreading risk, you reduce exposure to any single failure point.

Use available local instruments wisely, while keeping an eye on global possibilities.

The government is launching new vehicles (such as a state real-estate vehicle and a national investment fund bond) that aim to broaden participation. – see above reference article.
That said, always analyse fees, risk levels, and liquidity. Don’t automatically assume “government-backed” means zero risk. Also consider investing in global exposure where feasible (mindful of currency and access issues).

Control expenses, build an emergency buffer.

Before you invest heavily, ensure you have a buffer for shocks (job loss, illness, major repairs). Given the economic unpredictability, that buffer gives you the freedom to invest without being forced to liquidate at the wrong time.

Keep learning and adapting.

The environment will shift: changes in tax law, pension system reforms, capital market access, inflation rates, currency pressures. Stay informed. For example, many financial advisers in Trinidad & Tobago emphasize consistency and knowledge building over chasing “get rich quick” schemes.

Align with your risk appetite and timeline.

If you are early in your career, you may take more risk and favour growth assets; if you are near retirement, you may favour more stable income-generating assets. Tailor your approach rather than copying someone else’s plan.

Minister Tancoo’s message is a timely wake-up call: relying solely on the NIS (or any one system) for building wealth is increasingly risky, especially in the current socio-economic context of Trinidad and Tobago. That does not mean the NIS is useless: it still provides value and should be part of a broader context of financial planning. But it means you should take responsibility for your financial future, build habits, diversify, and adapt.

You already have strong entrepreneurial acumen and a business development mindset. Apply those same skills to your personal financial journey: set clear targets, treat your savings like a business income stream, evaluate risk and return, monitor performance, and adapt as the landscape changes.

What Small Businesses in Trinidad and Tobago Should Be Concerned About Right Now

Posted on by Cherise

What Small Businesses in Trinidad and Tobago Should Be Concerned About Right Now

Running a small business in Trinidad and Tobago has never been easy, but 2025 has brought a unique mix of economic, political, and social shifts that are making the environment even more challenging. While the entrepreneurial spirit remains strong across the country, small businesses need to approach the next 12 to 18 months with sharper awareness, stronger risk management, and more adaptive thinking. As an economist watching regional trends closely, here’s what I believe every small business owner in Trinidad and Tobago should be paying attention to right now.

Foreign Exchange Scarcity and Cost Pressures

One of the most immediate and frustrating realities for small businesses is the ongoing shortage of foreign exchange. Accessing U.S. dollars and other foreign currencies is increasingly difficult, with many businesses waiting weeks or months for allocations. Banks actually have businesses on a waiting list, and not just for U.S. dollars, but even Euros as well. This delay forces some to resort to the parallel market, where exchange rates are significantly higher, eroding already thin profit margins.

For businesses that rely on imported goods, raw materials, or equipment, this poses a serious risk. Cost planning becomes unpredictable, pricing strategies are harder to maintain, and in some cases, operations can be disrupted entirely. Companies should be exploring alternative sourcing options, negotiating more flexible supplier terms, or holding higher inventory levels if cash flow allows.

Energy Dependence and Macroeconomic Volatility

Trinidad and Tobago’s economy remains heavily tied to the energy sector. Oil, gas, and petrochemicals still account for a large share of GDP and export earnings. While the sector continues to generate revenue, it also exposes the country to external shocks. Fluctuations in global energy prices, production disruptions, or changes in global demand can all ripple into slower economic growth, tighter public finances, and weaker domestic demand.

For small businesses, this means heightened uncertainty. Government spending, consumer spending power, and business confidence are all linked to the fortunes of the energy sector. The pace of economic diversification remains slow, so businesses should anticipate cyclical ups and downs and plan accordingly.

Bureaucracy, Regulation, and Business Friction

Despite efforts to improve the business environment, regulatory delays, bureaucratic red tape, and inconsistent enforcement continue to frustrate small business owners. Licensing, permits, and tax compliance processes remain slow and often unpredictable. Legal disputes can take years to resolve, and government procurement processes are still viewed as opaque and overly complex.

This environment raises costs, lengthens lead times, and makes growth planning more difficult. Small businesses should build realistic timeframes into their operations, ensure they are fully compliant, and consider collaborating with business associations to advocate for regulatory reform.

Inflation, Consumer Spending, and Cost of Living Pressures

Inflation remains a real concern, especially when combined with foreign exchange challenges. Even with relatively moderate headline inflation, the cost of imported goods continues to climb. At the same time, rising food prices and cost-of-living pressures are eating into household budgets.

For many consumers, non-essential spending is the first to go. Businesses in retail, services, and lifestyle sectors may feel the pinch as demand softens. To stay resilient, small businesses should focus on value-driven offerings, flexible pricing strategies, and products or services that remain relevant even in tighter economic conditions.

Financing Constraints and Higher Credit Risk

Access to finance has always been a challenge for small businesses, and the current environment may tighten lending conditions further. Banks are likely to remain cautious, especially with weaker consumer demand and slower economic growth. For entrepreneurs without strong collateral or a solid credit history, accessing loans for growth or even working capital can be difficult.

Now is the time to strengthen financial records, improve cash flow management, and explore alternative financing models such as supplier credit, co-operative lending, or investment partnerships.

Policy Shifts and Fiscal Pressures

The recent change in government introduces another layer of uncertainty. Policy priorities, tax measures, and regulatory approaches could all shift as the new administration seeks to address fiscal pressures and social demands. With public debt rising and revenue challenges persisting, there is a real possibility of new taxes, reduced subsidies, or increased enforcement.

Small businesses must stay alert to policy announcements, budget statements, and legislative changes. Being proactive rather than reactive can help you adjust your business model ahead of regulatory changes rather than scrambling after the fact.

Crime, Security, and Social Instability

Rising crime rates continue to affect both the cost and safety of doing business. Security systems, insurance premiums, and operational risks all add to the expense of running a small enterprise. Beyond that, protests linked to economic frustration or service delivery can also disrupt transportation, supply chains, and customer traffic.

Factoring security into your cost structure and continuity planning is no longer optional. It’s essential!

Climate Vulnerability and Infrastructure Gaps

Finally, climate-related risks and infrastructure limitations should not be ignored. Severe weather events, flooding, and drainage issues can disrupt operations or damage assets, particularly for businesses in manufacturing, logistics, or retail. Weak infrastructure, such as inadequate roads or unreliable utilities, also adds hidden costs.

Businesses should assess their physical vulnerabilities, insure critical assets, and develop contingency plans for disruptions.

What Small Businesses Can Do Now

While these challenges are significant, they’re not insurmountable. Small businesses that adapt early and plan strategically can still thrive. Here are a few practical steps:

  • Conduct stress tests on your cash flow to see how you’d manage under cost increases, supply delays, or reduced sales.
  • Diversify your revenue streams to avoid relying too heavily on one market or product.
  • Build local supplier relationships and explore nearshore sourcing to reduce foreign exchange exposure.
  • Manage debt conservatively and avoid overleveraging in uncertain times.
  • Monitor government policy closely and adjust your business plans quickly when changes occur.
  • Strengthen collaboration with industry associations to amplify your voice on policy issues.

The road ahead for small businesses in Trinidad and Tobago is not without obstacles, but it’s also full of opportunity for those who are agile, informed, and prepared. The current state of affairs demands more than just optimism; it calls for strategic action, sound financial management, and a deep understanding of the forces shaping the economy. With the right approach, small businesses can continue to be the engine of growth and innovation that the country needs.

The difference between Tax Returns and Annual Returns in Trinidad and Tobago

Posted on by Cherise

WHO FILES A TAX RETURN

  • Sole traders & self-employed persons – even if you made little to no income in the year.
  • Registered companies – whether you are profitable or not.
  • Individuals with additional income sources outside of employment.
  • Partnerships – Green Fund Levy

TAX RETURN VS ANNUAL RETURN

Running a business is more than just keeping customers happy and managing sales. Behind the scenes, there are compliance requirements legal and financial obligations you must meet every year to stay in good standing.

In Trinidad and Tobago, two of the most common (and often misunderstood) requirements are the Tax Return and the Annual Return. While they sound similar, they have different purposes, different deadlines, and different filing authorities. Missing either one can cost your business dearly.

This guide will walk you through what they are, why they matter, and how to make sure you stay compliant.

Understanding the Tax Return

A Tax Return is your formal report to the Board of Inland Revenue Division (BIR) that details your income, expenses, and the amount of tax you owe for a given financial period.

It is the government’s way of ensuring that individuals and businesses are paying their fair share of taxes based on actual earnings.

Who Files a Tax Return?

  • Sole traders & self-employed persons – even if you made little to no income in the year.
  • Registered companies – whether you are profitable or not.
  • Individuals with additional income sources outside of employment (such as rental income or investments).
  • Partnerships – Green Fund Levy. Note that individual partners pay Income Tax (something entirely different), while the Partnership itself pays Green Fund Levy.

When is it Due?

  • Sole traders & individuals: Usually April 30 each year for the previous year’s earnings.
  • Companies: Tax Returns must be submitted before October 31st of the following year, while payments must be made before April 30 of this same year in order to avoid penalties.

What’s Included in a Tax Return?

  • Total revenue earned.
  • Operating expenses (rent, salaries, utilities, etc.).
  • Profit or loss for the year.
  • Tax payable or refund due.

Key Point:

The Tax Return focuses on financial performance, your numbers, not your company’s legal status.

Understanding the Annual Return

An Annual Return is not about your income or expenses; it’s about your company’s structure and legal details.

It is filed with the Companies Registry to confirm your company’s current status, such as who owns it, who manages it, and how shares are distributed.

Who Files an Annual Return?

  • All registered companies in Trinidad and Tobago (limited liability), regardless of whether they are actively trading or not. As of recent (October 2024), partnerships, non-profit organisations and non-profit companies also have to file.
  • Not required for sole traders.

When is it Due?

  • Every year on the anniversary of your incorporation date for companies and registration date for partnerships.

What’s Included in an Annual Return?

  • Company name and registration number.
  • Details of directors and shareholders.
  • Share capital information.
  • Registered office address.
  • Any loans or charges in the name of the company

Key Point:

The Annual Return is about providing updates to the Companies Registry about the current status of your business. In other words, they want to know who are your current directors, your current secretary, if your business has changed location from the one last reported, if you issued any new shares, etc.

The Consequences of Missing Deadlines

Filing late, or not filing at all can have serious consequences:

  • For Tax Returns: Late fees, interest on unpaid taxes, audits, and legal action.
  • For Annual Returns: Fines, loss of good standing, and possible removal (“striking off”) from the Companies Register.

Many business owners mistakenly think that if they file one return, they are covered for both. Unfortunately, that’s not true, these are separate legal obligations.

A Side-by-Side Comparison

 

Tax Return

Annual Return
Filed With Board of Inland Revenue (BIR) Companies Registry
Purpose Reports income, expenses, and tax liability

Updates the Companies registry with company ownership, directors, and structure
Focus Financial performance Legal standing
Who Files Sole traders, registered companies, self-employed individuals, partners file Income Tax Companies only, partnerships, non-profit organisations and non-profit companies
Deadline April 30 for individuals; Oct 31 for companies Anniversary of incorporation

(See notes above for detailed clarification)

Best Practices to Stay Compliant

Track Your Dates – Mark both deadlines on your calendar to avoid late filing fees.

Keep Records Year-Round – Store receipts, invoices, and contracts so reporting is easier.

Work With Professionals – Accountants and corporate secretaries can help prepare and file on time.

File Even if Inactive – If you earned nothing or made a loss, you still must file to remain compliant.

Plan Ahead – Don’t wait until the last minute; gather your information early           

Final Word                                                        

The Tax Return and the Annual Return are both essential for keeping your business healthy in Trinidad and Tobago. One ensures that you’re meeting your tax obligations, the other ensures your company remains legally recognized.

At The Timely Entrepreneur Resource & Research Centre, we’ve seen too many businesses face unnecessary fines or lose their legal standing simply because they didn’t understand the difference.

Knowledge is protection and in business, protection means profitability.

Need Help Filing?
We can guide you step-by-step, prepare the required documents, and ensure you meet every deadline without stress.

The Timely Entrepreneur Resource & Research Centre – Helping entrepreneurs in T&T start, manage, and grow the right way. If you need further clarification, please call our Compliance department @ 868 760-6221.

Build Passive Income from the Business You Already Have

Posted on by Cherise

Stop Trading Time for Money: How to Build Passive Income from the Business You Already Have

When Your Business Needs to Work Without You

Entrepreneurs often reach a point where the daily hustle becomes unsustainable. You’re the first one in and the last one out. You wear every hat: manager, marketer, service provider, and sometimes even janitor. And while you’re building your business with heart and purpose, you do understand that if your income stops when you stop, your business is not truly sustainable.

One of the most powerful things we teach at The Timely Entrepreneur Resource and Research Centre is how to create passive or semi-passive income from the very business you already own. This isn’t about starting something new, but it’s about looking at what’s already in your hands and finding ways to multiply its impact without multiplying your hours.

Let’s look at how this can work for real Caribbean business owners across various industries.

What Is Passive Income Really?

Passive income doesn’t mean you never have to work again. Instead, it means that with the right systems in place like automation, digital products, or recurring revenue models, your business can generate income without needing you to be constantly present or available.

The goal? To reduce dependency on you as the owner and give you back time, energy, and freedom while still earning.

Real-World Examples by Industry

Clothing Store Owner

Instead of relying solely on in-store sales, create a mini digital style guide such as “How to Dress for Your Body Type” and sell it online. Set up an e-commerce site that offers curated outfit bundles by occasion (workwear, weekend casual, etc.) and offer automatic reordering for loyal customers.

Tea Business

Use your knowledge of herbs and wellness to create a downloadable e-book or a paid “Tea & Wellness” workshop. Offer subscription boxes where customers receive a curated tea blend every month without needing to reorder each time.

Hairdresser

Turn your expertise into a video series or a paid online course. For example, “Protective Styles 101” or “Healthy Hair at Home.” Sell hair care kits with your recommended products. Clients can continue learning from you and buying from you even when you’re not in the salon.

Construction Company

Create downloadable resources or recorded webinars on topics like “How to Budget for Your First Renovation” or “Top 5 Ways to Prepare Your Home for Construction.” You can also sell toolkits or checklists for home maintenance that clients can purchase year-round.

Tuition Centre

Record your most popular lessons or exam prep sessions and offer them through an online learning portal. Build a membership model where students gain access to recorded content, quizzes, and bonus resources for a monthly fee.  No live teaching required every week.

Mini Mart Owner

Introduce weekly grocery subscription bundles or digital ordering for routine household items. Partner with local vendors to create themed “Survival Kits,” “Snack Boxes,” or “Local Favourites Packs,” with delivery included.

Catering Business

Sell meal prep guides, downloadable recipe e-books, or pre-recorded cooking classes. You can also create meal kits that customers can assemble themselves, with ingredients and instructions included.

Fitness Trainer

Offer recorded workout programs, meal plans, and wellness challenges as part of a paid online membership. Build a fitness app or downloadable guide that doesn’t require live coaching.

Photography Business

Sell presets, editing guides, or “how-to” courses for amateur photographers. You can also license your images to online stock photo sites for recurring royalty income.

It’s Not About Doing More

Many entrepreneurs assume that earning more means working more. But the truth is, passive income requires you to work differently. It means setting up products, services, and systems that continue to add value without your constant presence.

You don’t need to be everywhere at once. You just need to build once with intention and design your business to grow even when you’re not looking.

If you’re tired of running full speed just to stay afloat, it may be time to create income that doesn’t always need your hustle to survive.

🔸 Are you ready to explore what passive income looks like for your specific business? Let us help you map it out.

🔸 Click the link to book a BIT Session for urgent support with your next step.

 

BUSINESS IN TROUBLE ?

Did You Get Paid Yet?

Posted on by Cherise

Pay Yourself as an Entrepreneur!

Let’s get honest:
Too many small business owners are making sales but not taking home a cent for themselves. They’re covering all expenses: paying rent, covering suppliers and even spending on Facebook ads. But when it’s all said and done, they’re left empty. You’ve got to pay yourself as an entrepreneur!

What no one tells you is this:

If you don’t build your business in a way to pay yourself, your business will never truly work for you. And eventually, you’ll burn out, be frustrated and financially stressed, wondering where all the money went.

But how can you pay yourself when sales are low or inconsistent?

Let’s break this down. Here are some ways The Timely Entrepreneur worked out:

Shift Your Mindset First

Stop treating your salary as a reward. A salary is not something you earn only if things go well. It’s a non-negotiable business expense just like internet bills, inventory or accounting fees. So, if your business has a monthly operating budget, your pay must be included in it even if it’s small. If it’s not in the budget, then you’ve built your business model wrong!

Pay Yourself a Percentage, not a Fixed Amount

When revenue is low or inconsistent, we understand that a fixed salary can be stressful. Instead, pay yourself a percentage of net revenue or profit.

For Example: If your business earns $8,000 this month, and your fixed expenses are $5,000, you’re left with $3,000.
Choose a percentage, let’s say, 30% of net profit and pay yourself $900.
This leaves room for reinvestment while still honouring your role in the business.

Pro tip: Choose a percentage that aligns with your goals (10% if you’re reinvesting heavily, 30–50% if it’s your main income).

But what if the business owns less than $5000 TT per month? How can one pay one’s self a salary from that?

Now that’s a very real situation and one that many small businesses face.

If your business earns less than $5,000 TT per month, you can still pay yourself a salary, but it requires intentional structure, discipline, and understanding of your business priorities.

Here’s how it can be done realistically:

Shift from “Salary” to “Owner’s Draw” Temporarily – Open a Separate Business Account & “Owner Pay” Account

Whether you’re a sole trader, company or other business structure, set up 2 accounts:

  • Business Account for all income and expenses
  • Owner Pay Account where your salary is transferred monthly or biweekly

Why? Because when all your business money is mixed with personal expenses, it’s easy to “borrow” from yourself and lose track. This system helps build discipline.

Instead of thinking in terms of a formal salary (like in a job), think of it as an owner’s draw – a small, planned amount you take out every week or month from what’s available after expenses.

Example:
If you earn $4,800 TT/month and your bare minimum business expenses (inventory, data, delivery, etc.) are $3,000:
→ That leaves you with $1,800 TT.
→ Decide to give yourself a set draw of maybe $1,000, and keep the remaining $800 for savings or reinvestment.

If you use the percentage rule to stay consistent, simply choose a fixed percentage, no matter how small. 10%–20% of total revenue is a good place to start. If your sales fluctuate:

“This month I made $3,500, I’ll still pay myself 15%, which is $525. Next month might be higher or lower, but stay consistent in percentage, not amount.”

This teaches you to think like a disciplined business owner, even at low-income levels.

Build Your Pay into Your Pricing

Ask yourself: “Is my current pricing too low to ever support me?”

If your profit per sale is only $10 or $20, you’ll need to sell 100+ items per month just to pay yourself. That’s not sustainable.

Even when you’re starting small, build your pay into your cost formula:

Selling Price = Cost of Product + Expenses + Your Pay + Profit Margin

If you pay yourself just $100 per week now, design your pricing around that goal.

If you can’t afford to pay yourself based on your current pricing, maybe you’re undercharging.

  • Are your prices based on actual cost + value?
  • Are you accounting for your labour, creativity, and time?

Your salary must be a line item in your cost structure.
Even if you’re not a limited company, you are still the engine behind it all. Don’t price yourself out of your own business.

Use the Profit First Model (Simplified)

Consider this simplified system:

Every time you get paid:

  • 50% → business expenses
  • 30% → owner salary
  • 10% → taxes
  • 10% → savings/reinvestment

Adjust based on your stage, but the idea is to put money where it matters most — not where it simply disappears.

Manage Personal Expenses with Intention

Yes, this may mean that you have to cut personal costs to make it work. This part is tough, but necessary. If you are drawing $1,000–$1,500 TT/month from the business, then your personal expenses must be minimal. Your personal budget has to reflect that reality.

This might mean:

  • Delaying luxuries
  • Cutting unnecessary subscriptions
  • Getting creative with meals and transportation
  • Staying with family while you build

This sacrifice will just be temporary, don’t worry. Discipline now creates freedom later.

Set a Minimum Survival Salary

Calculate what’s the least you need to survive personally each month (food, transport, phone credit, etc.). Let’s say it’s $1,200 TT.

If your business can’t make room for at least that, then:

  • You either need to increase sales
  • Or reduce business costs
  • Or diversify income (side hustle, part-time work, etc.)

Consider Paying Weekly, Not Monthly

It’s often easier to manage small amounts weekly. For Example: If you only earn $4,000 TT/month, pay yourself $250–$300/week consistently. It feels more manageable and ensures you’re not always “waiting on month-end” to eat or live.

Track EVERYTHING.

The truth is in the numbers. Track:

  • Every dollar you earn
  • Every expense
  • What you pay yourself
  • What’s left behind

This builds self-awareness and helps you see what’s realistic and where changes are needed.

If your business can pay everyone and everything else but not you, it’s time to re-evaluate.

As Entrepreneurs, we need to hold ourselves accountable for what goes on in our businesses. We need to develop discipline in our spending, in our pricing, and in how we manage our most liquid asset, cash, because if we keep building businesses that starve the builder, we’re only building resentment, and that’s not why you started your business. You don’t wait to start paying yourself after your business gets big. You pay yourself so that your business has something to grow you into.

Have you started paying yourself yet, or are you still trying to figure it out? Check out our Business in Trouble Sessions and reach out to us for all your business needs.

Limited Liability? Not Always. How Directors Can Still Be Personally Liable Under the Companies Act of Trinidad & Tobago

Posted on by Cherise

Limited Liability? Not Always. How Directors Can Still Be Personally Liable Under the Companies Act of Trinidad and Tobago

 

When we posted our last blog on “Struck Off & Still Operating”, we’ve had persons flooding our inbox with the question of ‘What about directors and limited liability?’ So hopefully this article can clear things up a bit.

Many business owners believe that once their company is registered as a limited liability, they’re automatically shielded from personal responsibility. But that belief could cost them everything, especially if they act outside the law.

Under the Companies Act, Chap. 81:01 of Trinidad and Tobago, directors can and do become personally liable under certain conditions. If your company is struck off, non-compliant, or you’re ignoring your statutory duties, you may be legally exposed and not even know it.

We tried our best to quote the legislation verbatim and here’s what the law actually says:

But wait…before we go further, here’s our disclaimer…

Disclaimer:
The information provided in this blog is for general informational purposes only and is not intended as legal advice. It does not create an attorney-client relationship and should not be relied upon as a substitute for professional legal counsel. If you require legal advice specific to your situation, please consult a qualified attorney.

When the Company is Struck Off, You’re No Longer Protected

According to Section 489(1) of the Companies Act, a company may be struck off the register by the Registrar if it fails to:

  • File annual returns
  • Pay prescribed fees
  • Fulfill statutory obligations

Operating After Strike-Off (Section 489)

Once a company is struck off, it ceases to exist as a legal entity. Any individual, including a director who continues to:

  • Operate the business,
  • Enter into contracts,
  • Issue invoices,
  • Receive payments,

…is acting in a personal capacity or in fraud of third parties.

So, if a director continues to operate the business, they are doing so personally and illegally. Any contract entered into may be declared void, and any losses or damages may fall squarely on the director’s shoulders, not the company’s.

The limited liability protection vanishes the moment you act on behalf of a non-existent company.

Breach of Director Duties (Sections 99–101)

The Companies Act clearly states the fiduciary and statutory duties of directors. The Act outlines strict duties of care, diligence, and good faith for directors as shown below:

  • Section 99(1): Directors must act honestly and in good faith in the best interests of the company.
  • Section 99(2): They must exercise the care, diligence, and skill that a prudent person would in similar circumstances.
  • Section 100: They must comply with the Companies Act, bylaws, and corporate resolutions.

If a director fails to:

  • Act diligently,
  • File required documents,
  • Disclose material conflicts, or
  • Uphold compliance obligations,

…they may be found personally liable for negligence or misconduct, especially where third parties suffer loss.

Fraud, Misrepresentation & Lifting the Veil

Although the company is a separate legal entity, courts can apply the principle of ‘lifting or piercing the corporate veil’ if:

  • The company is used for fraudulent, dishonest, or illegal purposes
  • The director conceals the true status of the business (such as pretending to be active when struck off)
  • There is abuse of the corporate structure to evade legal responsibilities

This exposes directors to civil and possibly criminal proceedings.

If the court finds that the company is a façade or the director acted in bad faith, they may impose personal liability. This legal doctrine allows the court to treat the company’s liabilities as the director’s own.

Legal Risk: Reiterated plainly, courts may disregard the company’s limited liability status and hold the director personally liable because the company, by law, no longer exists. Such actions can constitute fraudulent misrepresentation or unauthorized dealings.

Note:

  1. (1) A company is guilty of an offence and is liable on summary conviction to a fine of ten thousand dollars if—

(a) the management of the company without reasonable cause fails to comply with section 143(1); or

(b) the company without reasonable cause contravenes section 155.

(2) When a company is guilty of an offence under this section, any director or officer of the company who knowingly authorised, acquiesced in or permitted the contravention is also guilty of an offence and liable on summary conviction to a fine of ten thousand dollars and to imprisonment for a term of six months.

  1. “Every person who is guilty of an offence under this Act or the Regulations is, if no punishment is elsewhere in this Act provided for that offence, liable on summary conviction to a fine of ten thousand dollars.”

If a company fails to file, submits false information, or breaches the law in any form, and a director knowingly allowed it to happen, that director may be criminally prosecuted alongside the company.

This includes:

  • Failing to file annual returns
  • Operating while struck off
  • Providing false declarations to the Companies Registry

Banking, Contracts, and Public Procurement Risks

Operating a business while struck off can affect your:

  • Business bank account (frozen, flagged or closed)
  • Loan or grant applications (disqualified)
  • Eligibility for public tenders (automatically ineligible)

If a director signs a lease or tenders a bid while the company is non-existent, that signature is personal. Not only can the contract be declared void, but the director may be sued personally for breach or even fraud.

Real-World Example: Business Still Operating After Strike-Off

If a company is struck off for failure to file annual returns (under Section 489(1)(a)) and a director continues to:

  • Invoice clients,
  • Apply for government contracts,
  • Use the company’s name for banking or commercial purposes,

…then any liabilities incurred during this period may attach personally to the director. Banks, clients, and government agencies are legally entitled to take action against that individual, not the non-existent company.

Know Your Risk

Being a director of a limited liability company does not mean you’re untouchable.
If you:

  • Operate after strike-off,
  • Ignore filing obligations,
  • Authorise illegal activity, or
  • Fail to act with care and diligence,

…you can be personally liable under Trinidad and Tobago law.

In Summary, Under the Companies Act, Chap. 81:01:

  • Directors have clear statutory duties (Sections 99–101)
  • Acting on behalf of a struck off or dissolved company exposes directors to personal legal and financial consequences (Section 489)
  • Directors can be personally liable for offences committed by the company (Section 513)
  • Limited liability does not protect directors who act dishonestly, negligently, or illegally

Limited liability is a privilege, one that must be maintained through legal compliance and responsible governance.

So again, while one of the core features of a limited liability company (LLC) is that shareholders and directors are generally not personally liable for the debts of the company, this protection is not absolute. Under the Companies Act, Chap. 81:01 of Trinidad and Tobago, directors can face personal liability in specific circumstances, particularly where they breach their statutory duties, act unlawfully, or continue operating after the company is struck off.

If you’re unsure about your company’s status or obligations, act now. The cost of waiting may be your personal finances, legal record, and business reputation.

Need Help Getting Your Company in Order?

The Timely Entrepreneur Resource and Research Centre offers guidance through our Tax Compliance & Business Restoration Support services. Reach out if:

  • You’ve been struck off
  • You’re not sure what your compliance status is
  • You need help filing or restoring your company

Struck Off & Still Operating?

Posted on by Cherise

Struck Off & Still Operating?

If your business has been struck off the Companies Registry, you are no longer a legally recognized entity, and continuing to operate could land you into a lot trouble.

You may be in breach of the Companies Act.

Let’s talk first about what it really means to be “Struck Off”

Being “struck off” means your company has been removed from the official Register of Companies kept by the Ministry of Legal Affairs. According to the Companies Act, Chap. 81:01 489. (1) The Registrar may strike off the register a company

or other body corporate, including an external company, if—

 (a) the company or other body corporate fails to send any return, notice, document or prescribed fee to

the Registrar as required pursuant to this Act;

 (b) the company is dissolved;

 (c) the company or other body corporate is

amalgamated with one or more other companies

or bodies corporate;

 (d) the company does not carry out an undertaking

given under section 493(a)(i);

 (da) the registration of the non-profit company is

cancelled or surrendered pursuant to the

Non-Profit Organisations Act 2019; or

 (e) the registration of the body corporate is revoked

pursuant to this Act.

Once struck off, your business is no longer a legal entity. Your company no longer legally exists. 

In addition to the above, it is worth noting that liability continues. But that’s a whole other conversation we may discuss at another time. (See legislation clip in image below)

Can You Still Operate a Business If You’re Struck Off?

A direct answer to this question is No! And doing so is a direct violation of the law.

When your company is struck off:

  • It no longer exists legally.
  • Cannot issue valid invoices, sign leases, or engage in official transactions
  • You cannot enter into any lawful contracts, including with private sector clients and especially not with government ministries or agencies.
  • You risk contract nullification, fines, and legal exposure.
  • Directors and officers may become personally liable for actions taken on behalf of a non-existent entity.

That means if you sign a lease, invoice a client, or apply for a government tender, you may be committing fraud. If you’re still conducting business as usual, you’re exposing yourself to legal penalties, contract disputes, and even criminal liability.

A struck-off company cannot do business with the government. Ministries, state companies, and procurement offices are bound by law to award contracts only to companies in good standing.

Awarding contracts to a struck-off company:

  • Violates public procurement regulations
  • Exposes the government to legal action
  • Can trigger investigations into public officers
  • Places the entire project at risk of being invalidated

If you’re struck off, you’re automatically disqualified from receiving or performing any official contract.

You must act with urgency to be restored to good standing. The longer you delay, the greater the risk of:

  • Losing existing contracts
  • Becoming ineligible for bank loans or government grants
  • Facing legal action from clients or suppliers
  • Personal liability as a director

Here’s the part most business owners miss: their business bank account!

Banks in Trinidad and Tobago are legally obligated to ensure their business clients are active, compliant entities. Being struck off can trigger serious banking consequences:

  • Your business account may be flagged or frozen due to non-compliance
  • You may be unable to open new business accounts
  • Access to credit lines, overdrafts, and loans can be revoked or denied
  • You may be required to provide evidence of restoration to continue using business banking services
  • Some banks have been known to report non-compliant accounts to regulators under anti-money laundering protocols

In short, your ability to access, move, or receive money could be severely limited just because you didn’t file your annual returns.

The Companies Registry allows for restoration, but it’s not automatic. You must first:

  • Clear all outstanding annual returns and notices
  • Pay applicable penalties and late fees (the current amnesty – which expires on September 15, 2025 – eliminates these costs)
  • Submit a formal request for restoration via the prescribed Form 24 (companies)

The longer you wait, the more complex and expensive this process becomes. Ignoring this problem now, is putting everything at risk: your contracts, your bank account, and your entire business reputation.

Operating a struck-off company is not business as usual, it is business at risk! You’re breaking the law, you’ll be disqualified from government contracts, your bank account could be suspended and your directors may face personal liability.

Don’t know if your company was struck-off? Check your company status now. Note, the Companies Registry’s site is in “Not Secure” mode, so you may have to open link on a desktop. Or simply call us to check for you. https://legalaffairs.gov.tt/strikeoff.php

And if you need to get your business back on the Registry or simply in order, check out our Tax Compliance Department.

Help, I Run a Food Business and I’m Struggling to Keep Up With My Competitors

Posted on by Cherise

Help, I Run a Food Business and I’m Struggling to Keep Up With My Competitors

If you run a food truck, or have a food business operating, then you know that in this hyper-competitive food and beverage industry, you have to put in the work. At The Timely Entrepreneur Resource and Research Centre, we work with foodpreneurs just like you and we’ve seen their struggles and helped take them from barely surviving to powerfully thriving.

So let’s get into it. If you’re struggling to keep up with your competitors, here’s your practical, no-fluff guide to standing out, building customer loyalty, increasing profit margins, and reclaiming your place at the table.

First, you must understand Why you’re losing ground

Before you fix anything, you need clarity on what’s going wrong. Ask yourself:

  • Are your prices too high or too low?
  • Are your food options outdated or too generic?
  • Is your customer service inconsistent?
  • Do you understand your target customer, or are you guessing?
  • Are you depending on walk-ins and word-of-mouth while competitors are dominating social media and delivery apps?

Start by doing a local competitive audit: visit your competitors, see what they’re doing right, read their reviews, examine their social media and menus, and look at their offers. This is not to copy, but to identify the gap you’re not filling.

Next, define a Unique Selling Point (USP) or Shut Down the Noise

You don’t need to be everything to everyone. But you must be something specific to someone special.
Examples of niche USPs:

  • “The only vegan Caribbean fusion in Chaguanas.”
  • “Home of the 24-hour smoked jerk chicken.”
  • “Handcrafted desserts with local fruit wines.”
  • “Fastest meal-prep delivery for busy professionals.”

A defined USP does 3 things:
1. It attracts the right customer
2. It justifies your price point
3. It makes you memorable

If your menu reads like every other person selling food, why should anyone choose you?

Revamp Your Menu, But Don’t Overdo It

A bloated menu is costing you more than you know: higher food waste, slower service, confused customers.

Instead:

  • Trim your menu to top-selling or signature items.
  • Introduce limited-time offers to create urgency. Mario’s recently had a mini specialty pizza with a burger with a very competitive price point and our team was on a race of time to get to an outlet before 9pm. Talk about pace! And fun too! So, you can spice it up too.
  • Use the “Golden Trio” pricing strategy: low-cost, medium-profit, and premium items.

Food businesses increase profits not by having more items, but by selling more of what’s working.

Master Visibility: If They Don’t See You, They Can’t Buy from You

You don’t need to go viral but you do need to be consistent.

  • Use Instagram and TikTok Reels to show behind-the-scenes, food prep, and happy customers.
  • Encourage user-generated content (UGC). Give discounts for customer selfies with your food.
  • Partner with local influencers, even micro ones.
  • List your business on Google Maps and local delivery platforms.
  • Run a “Tag to Win a Meal” challenge every month to boost engagement and visibility.

If no one is talking about you, it’s not that you’re bad, it might be that you’re invisible.

Build Fierce Customer Loyalty (So You Don’t Have to Beg for Sales)

Returning customers = higher profits with less marketing.

Try this:

  • Launch a loyalty card (Buy 6 meals, get 1 free).
  • Send personalized WhatsApp deals to past customers. Sammy’z Fast Food in Chase Village is an excellent example of this.
  • Create a VIP “taste test” list for new dishes and let your regulars feel part of your growth.
  • Send an email or text on their birthday with a free drink or dessert. Yet another Marketing A for Mario’s on this one.

Make customers feel known, and not just sold to.

Fix the Numbers That Are Draining Your Business

Bad math can make your businesses go under.

Key metrics to track:

  • Cost of Goods Sold (COGS): Know exactly how much it costs to make each item.
  • Profit margin per item: Are you pricing for profit or pricing out of fear?
  • Daily break-even point: Know exactly how much you need to sell per day/week to stay afloat.
  • Waste levels: Monitor expiry dates, unused stock, and over-prepping.

Use a simple spreadsheet or POS system to track this. You cannot grow what you don’t measure.

Add Income Streams. 

If foot traffic dips, can your business survive?

At The Timely Entrepreneur, we preach diversification. Here’s how you can diversify:

  • Meal kits or frozen packs (e.g., “Take-Home Doubles Kit”).
  • Private catering or lunchbox plans for offices.
  • Online cooking classes or recipe eBooks.
  • Weekend pre-order-only specials for large family meals.

Upgrade Your Customer Experience

Food might bring customers in, but your service brings them back.

Ask:

  • Are your staff friendly and professional?
  • Is your space clean, appealing, and branded?
  • Are your takeout bags and boxes branded with your logo and contact info?
  • Do you offer fast, efficient service, especially during lunch hours?

Every point of contact, from the scent when they walk in, to how you package is an opportunity to stand out. Darren’s Doubles sells their delicious pholourie in a sturdy white bowl container, with the sauce in a separate mini clear container placed in the bowl. Impressed much!

Be Relentless in Your Improvement

  • Survey your customers every 3–6 months.
  • Ask for feedback and use it.
  • Attend food expos, trends webinars, and taste what’s new.

Don’t just think you’re running a food business. You’re also building a brand. Stay hungry.

You didn’t get into this business to stay behind. You entered the food industry because you had a flavor, a vision, a why! So don’t let competition bully you into silence. With the right strategy, clarity, and bold adjustments, you can do it.

At The Timely Entrepreneur Resource and Research Centre, we are committed to supporting entrepreneurs like you with business coaching, resources, compliance assistance, and strategic planning. If you’re struggling, reach out. Help isn’t just a blog away. It’s right here with us.

Did you enjoy this article? We think you might like this one too:- Understanding how to price what you’re worth

Need urgent help with your food business? Book a Business Clarity Session or join our “Business in Trouble (BIT)” Sessions. Let’s turn things around—together.

How to Price What You’re Worth (Without Losing Customers)

Posted on by Cherise

How to Price What You’re Worth (Without Losing Customers)

In today’s competitive marketplace, determining the right pricing strategy is essential for sustainable business growth. Many of us Entrepreneurs and service providers grapple with the challenge of pricing their offerings fairly, balancing client satisfaction while ensuring profitability. Understanding how to price what you’re worth without losing customers is an art that combines market insight, confidence, and strategic communication.

Why Proper Pricing Matters

Pricing is more than just a number; it reflects your value, expertise, and the quality of your service or product. Setting the right price can:

  • Increase profit margins
  • Attract the right clients
  • Position your brand as premium or affordable, depending on your goals
  • Build trust and credibility with your audience

Conversely, undervaluing your services may lead to burnout, stagnation, or perceptions of lower quality, whereas overpricing can deter potential clients. Striking the right balance is key.

How to Price What You’re Worth Effectively

Understand Your Value and Market Position

Before setting your prices, assess what makes your offerings unique. Consider factors such as experience, expertise, results you deliver, and your target audience’s willingness to pay. Conduct market research to analyze competitors’ pricing and identify where your services fit.

For example, if you’re a graphic designer with over 10 years of experience, your pricing should reflect your advanced skills and portfolio quality, positioning you as a premium service provider.

Know Your Costs and Set a Clear Profit Margin

Calculate all costs involved in delivering your service, including time, tools, overhead, and taxes. Establish a minimum acceptable profit margin to ensure your business remains viable.

If it takes you 20 hours to complete a project, and your hourly rate covers your expenses plus desired profit, price accordingly to meet your financial goals.

Communicate Your Value Clearly

Clients are willing to pay more when they understand the value you offer. Use your marketing materials, proposals, and conversations to articulate the benefits, results, and unique features of your service.

Develop a compelling value proposition that highlights your expertise and the transformative results your clients can expect.

Implement Tiered Pricing or Packages

Offering different pricing tiers or packages provides options for clients with varying budgets. This approach allows you to capture a broader market without undervaluing your services.

For example, a coaching business might offer a basic package at a lower rate and premium packages with additional support and resources.

Be Confident and Consistent

Confidence in your pricing signals professionalism and value. Avoid discounting excessively or frequently to retain your worth. If necessary, explain your pricing to clients, emphasizing the quality and results they will receive.

Practice your pricing pitch and anticipate client questions to communicate effectively.

Price, But Don’t Lose Customers

Balancing your worth with customer retention requires strategic communication and flexibility. Here are some tips:

Educate Your Clients

Help clients understand why your services cost what they do. Share case studies, testimonials, or data that demonstrate the ROI of working with you.

Offer Value-Added Services

Enhance your offerings with additional value such as free consultations, resources, or follow-up support so as to justify your pricing.

Use Transparent Pricing Strategies

Be upfront about your rates and any potential additional costs. Transparency builds trust and reduces resistance.

Gradually Increase Prices

If you need to raise your prices, do so gradually and with notice. Offer existing clients special packages or loyalty discounts to ease the transition.

Knowing how to price what you’re worth without losing customers is crucial for long-term success. It requires understanding your value, conducting proper market research, communicating effectively, and confidently standing by your prices. Remember, the goal is to attract clients who appreciate your expertise and who are willing to pay for quality, ensuring a sustainable and profitable business.

P.s., if you need help with Market Research or Customer Retention, let us know here! Oh, and we also have a Pricing Guide available for purchase in office! Ask us about it. 

By implementing these strategies, you can confidently set your prices, maintain client satisfaction, and grow your enterprise.

Did you enjoy this article? Perhaps you’d like to read our article on The Funding Gap: The MSME Struggle

To receive articles in your inbox and updates on opportunities and programmes from The Timely Entrepreneur, sign up for our Newsletter here. We promise we won’t spam you. It’s going to be all business only!

The Funding Gap: What’s Really Holding MSMEs Back?

Posted on by Cherise

The Funding Gap: What’s Really Holding MSMEs Back?

While multiple funding mechanisms exist in theory, in practice, many MSMEs remain underfunded or entirely excluded from formal financing channels. The most common barriers include:

  • High collateral requirements
  • Limited or no credit history
  • Weak financial documentation
  • Informal business operations
  • Lack of awareness about available programmes

A January 2025 article by Dr Christian Stone, Chief Executive Officer, Term Finance SME states, “Micro, small, and medium-sized enterprises (MSMEs) in Trinidad and Tobago (T&T) struggle to access traditional financing, with only one in ten securing loans from local banks. A recent Trinidad and Tobago International Financial Centre survey shows that 77% of entrepreneurs lack business bank accounts, creating an estimated $17 billion financing gap for MSMEs.”

(Read full article here: https://www.ttifc.co.tt/web/how-microfinance-supports-tts-entrepreneurs/)

Key MSME Funding Options Available

Government Grants & Support Programmes

▪️ National Entrepreneurship Development Company (NEDCO)

Offers loans up to TT$500,000 with business development training. Their Business Accelerator Programme is critical for first-time entrepreneurs. Note: First-time borrowers can access up to TT$250,000 while repeat borrowers can access funding up to TT$500,000. NEDCO’s interest rate is fixed at 8 % (simple interest).

▪️ Agriculture Development Bank (ADB)

Provides financing for agri-based MSMEs — including crop farming, livestock, and agro-processing.

▪️ Eximbank T&T – Forex Facility

Helps manufacturers and exporters access foreign exchange to import essential inputs.

▪️ Ministry of Youth Development & National Service (MYDNS)

Youth Agricultural Homestead Programme and other initiatives fund youth entrepreneurship.

Private Sector & Microfinance

▪️ Credit Unions

Flexible, community-driven lending with more personalized assessments. Ideal for early-stage businesses with limited collateral.

▪️ Angel Investors / Venture Capital (Emerging)

Though not yet widespread, there is increasing interest in startup funding via Caribbean diaspora and business networks. Programmes like CARIRI’s Business Hatchery and Launch RockIt help bridge the gap.

Regional & International Funding

▪️ Caribbean Development Bank (CDB)

Offers grant funding and soft loans through intermediaries for innovation, resilience, and digital transformation.

▪️ Inter-American Development Bank (IDB Lab)

Partners with local organizations to fund social innovation, green business, and digital finance projects.

▪️ UNDP and EU Initiatives

Occasional grant opportunities targeting women, green energy, digital literacy, and post-COVID recovery.

How MSMEs Can Strengthen Their Access to Capital

Access to funding is not only about availability, it’s also about readiness. Here’s what entrepreneurs can do to improve their chances:

  • Formalize the business – Register with the Companies Registry and BIR.
  • Prepare proper documentation – Business plan, cash flow projections, and financial statements.
  • Build a credit profile – Start with small loans or credit union accounts.
  • Join an incubator or accelerator – These offer funding connections and capacity-building.
  • Apply for business mentorship or training programmes – Many funders prefer to lend to entrepreneurs who’ve gone through structured training.

The Role of Policy and Ecosystem Development

While entrepreneurship has been politically prioritized, access to capital needs deeper systemic reform:

  • Expand Credit Guarantee Schemes to reduce risk for lenders.
  • Simplify application processes for MSME grants and loans.
  • Improve financial literacy through nationwide programmes.
  • Create a national startup fund backed by public-private partnerships.
  • Digitize MSME support with centralized portals for funding access, application tracking, and mentoring.

MSMEs in Trinidad and Tobago are not short on ideas, ambition, or resilience; they are short on capital. As a nation, unlocking this capital is not just a financial imperative, but a social one.

With the right tools, partnerships, and policy environment, we can build a truly inclusive and innovative entrepreneurial economy.

Source: The Plight of the Small Business – Navigating Challenges in the Caribbean by Cherise Castle.

Entrepreneurs must get ready, but our institutions must also meet them halfway.

Infographic representing Dr. Stone’s article for easy referencing courtesy The Timely Entrepreneur. No copyright infringement intended.

 

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